Staff Reports
IRS Commissioner Danny Werfel recently took aim at the country’s wealthiest individuals, accusing them of shortchanging the government to the tune of a whopping $150 billion annually. In a fiery speech to CNBC, Werfel lambasted millionaires and billionaires for creating an “unfair” tax system, blaming their underreporting and non-filing for the massive tax gap. He decried the lack of funding for audits on the ultra-rich, lamenting that the IRS lacks the necessary resources to tackle the most complex tax returns.
According to Werfel, the tax gap is primarily fueled by the failure of the wealthiest individuals to fulfill their tax obligations, whether by skipping out on filing entirely or by lowballing their income. He emphasized the need for increased investment to ensure that the IRS can effectively enforce tax laws across the board, from the simplified filings to the complex webs woven by high-powered lawyers and accountants.
IRS chief says the wealthiest evade $150 billion in taxes every year https://t.co/pnKUCWDZ59 #BreakingNews #Breaking #Politics pic.twitter.com/woOkPjaQfe
— Patriot Pointman 🇺🇸 (@PatriotPointman) February 22, 2024
The fiery remarks come in the wake of Democrats’ push to boost IRS funding. The controversial Inflation Reduction Act, which sailed through in 2022 without a hint of Republican support, injected a hefty $80 billion in fresh funding into the IRS, much to the chagrin of the GOP. While Democrats championed the move as a necessary step to crack down on wealthy tax evaders, Republicans decried the potential for increased audits on the middle class and sought to slash the hefty funding allocation.
The Treasury Department’s analysis suggests that the newly bolstered IRS funding could yield a jaw-dropping $561 billion in additional tax revenue over the next decade. This projection aligns with the Biden administration’s goals, as National Economic Council Director Lael Brainard underscored the potential to substantially whittle down the deficit by holding the wealthy and big corporations accountable for their tax dues.
In a scathing rebuke, Brainard accused Congressional Republicans of prioritizing shielding the wealthiest Americans and big corporations from their tax obligations over chipping away at the deficit. Despite Republican efforts to rein in the generous IRS funding injection, the Treasury Department’s projections likely invigorate Democrats’ resolve to press on with their ambitious tax enforcement agenda.
